How Your Digital Transformation Creates Your Agility (Part 1 of 3)

Evan Sanchez & Paul Luibel, our Digital Transformation Expert, provide solutions to large IT stacks/systems & the stranglehold of their sunk-cost fallacies. 

Know the questions to ask internally before seeking self-interested vendor input.

Part 1 (6:27) in this 3-part series covers trends in Enterprise Agility and rethinking the monstrous issues with these current trends versus the agility central to smaller honeycomb-type systems.

Evan and Paul also expose the best place to start in procuring software, and the endgame of those who sell enterprise IT systems and platforms.

Transcription provided below if you would prefer to read rather than have A/V on.

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DIGITALLY-PROCESSED TRANSCRIPTION:

(00:06)

EVAN SANCHEZ: Hello and welcome to Springboard Your Biz TV. My name is Evan Sanchez of Springboard Consulting and Springboard Your Biz.

Today I'm happy to introduce you to another colleague, coach, consultant extraordinaire by the name of Paul Luibel. He's the president of Aguilar Systems.

(00:31)

And, I get the honor and privilege to talk to him and bring him to you wherever you may be today and talk about digital transformation.

He's our go-to.

He's the knowledge source,

He's the man when it comes to digital transformation.

And, there is not a company out there today that doesn't need to be thinking about digital transformation.

So Paul, thank you so much for being a part of Springboard Your Biz TV today.

(01:00)

And, I also want to just say that I consider you a personal friend and how cool it is to have a personal friend on the show today.

So, thank you for coming.

PAUL LUIBEL: Thank you for making me feel welcome. It's a pleasure to be here and certainly a lot of serious topics to go through and a lot of transformations to yield shareholder and personal value for our audience.

EVAN SANCHEZ: Yeah, so there you go. The guy is not only an IT…

(01:27)

Subject Matter Expert developer, but he's also got the skills of a CFO, and that's something that I don't have coming from the sales side.

But that's why I partner with great people that can compliment me and bring to the table what I don't have.

So what's the difference between laying concrete and posting a satellite?

PAUL LUIBEL: The concrete idea comes from Thomas Davenport at Harvard and University of Texas…

(01:55)

Tom had consulted a lot of clients building ERP systems. And there was a lot of drive to unify data within an enterprise. And that's what the enterprise resource management planning applications did.

It was an evolution. It was an important evolution.

But what many companies discovered is they froze their companies within that framework.

(02:25)

That it came with a lot of baggage, that you lost agility when you put forth an enterprise framework and an enterprise implementation.

What was the better answer?

The better answer was actually to start smaller.

EVAN: Frankenstein.

PAUL: Exactly.

EVAN: When I work with small businesses, I start with Frankenstein.

You got this one, this one, this one, this one.

How do we put it all together and make the perfect monster?

(02:54)

PAUL: That's right. That's right.

In this case, we are hearing about trends in digitization.

We're hearing about trends in enterprise agility, the ability to respond to the market needs and yet still have a data backbone where we can use data to respond to the customer.

So, let's rethink this whole enterprise data model and enterprise implementation.

(03:22)

What we should be thinking is to do it on a small scale.

Let's think more of the architecture of something like a honeycomb, where we perfect a particular instance of our enterprise, a functional area, a project area, something we're very familiar with.

Let's apply the disciplines of agility…

(03:50)

and digitization together in a smaller scale. Let's grow, let's be coached, let's understand that, and let's transfer that knowledge to the leadership inside the enterprise.

Once they have a win in one cell of the honeycomb, then you can apply it again and again and again.

And the result longitudinally is that you end up with an enterprise system the better way.

(04:19)

EVAN: Yeah, because that is not the way your traditional Salesforce, Service Now, what have you, major ERP will tell you.

They'll tell you Salesforce, for instance, entered into the sales function.

And they said, hey, by the way, sales touches every end of the business. So now we're going to sell you this enterprise system.

However, within that enterprise system, there was always a strength and then there was a weakness.

(04:49)

And you couldn't always get the economic value out of the enterprise implementation that somehow just continued to go on and on and on and on.

They did the whole land and expand thing, right?

PAUL: That's right. So their investors and their economic agenda portrays a licensing revenue that starts at a certain scope and then expands to a scope under their terms. Now, they'll have marketplaces.

(05:16)

EVAN: Yeah, because once you've landed it and paid the big implementation fee, you don't want to stop.

PAUL: That's right. And they'll have a marketplace with other collateral or other extensions of their platform. And they'll encourage their clients to use the additional marketplace to add on or to bolt on or to expand.

But that doesn't help the customer understand. That doesn't breed in coaching.

(05:45)

That needs to be a part of every information technology implementation. So let's rethink that.

Before we start buying software, before we start using software, let's go backwards and think about a better way to inform ourselves as to how to buy software or how to procure it.

Or ultimately, as I'm professing today, is to put together a different, smaller architecture…

(06:14)

that rounds out into a nice big honeycomb by putting the cells together.

(END OF PART 1 OF 3-PART SERIES.)